Southeast Alabama Medical Center, a nonprofit serving southeast Alabama, parts of Georgia and the Florida panhandle, said in a prepared statement that $40 million will be invested in the college, which will be developed by the county health care authority and operated by a nonprofit board.

Of the $40 million, $15 million for operating expenses will be provided by SAMC and $25 million for construction will come from the sale of bonds. The college is to be located at or near SAMC and construction is expected to begin next year.

The state faces a shortage of more than 400 primary care physicians, and existing physicians will face an increased workload as more Alabamians become insured under the federal health care insurance overhaul, SAMC said.